Tokenomics - Fulfill Contractual Obligation with Balancer Regarding the BANK/wETH Pool on Ethereum Mainnet

Grants/Funding
1

Proposal Name: Tokenomics - Fulfill Contractual Obligation with Balancer Regarding the BANK/wETH Pool on Ethereum Mainnet

Program Champion(s): Icedcool, nonsensetwice, general tokenomics crew

OP Date: April 2022

Status: Forum Voting [Draft->Voting->Forum Voting->Closed]

Voting Link:

CONTENTS

  1. TL;DR
  2. Multisig Address
  3. Background
  4. Solution

TL;DR

Per bDAO’s agreement with Balancer Protocol, Balancer requires 475K BANK to distribute rewards to those who provided liquidity during the rewards period for the original BANK/wETH pool on Ethereum Mainnet.

MULTISIG ADDRESS

0xc38c5f97B34E175FFd35407fc91a937300E33860

BACKGROUND

The BanklessDAO (bDAO) Tokenomics team works to find and create opportunities for BANK token owners to incentivize their holding of the token. One such method is to partner with specific decentralized finance (DeFi) protocols to allow BANK token owners to increase their holdings by providing liquidity mining incentives to any BANK token owner that provides liquidity (Liquidity Providing/Provider, or LP) to BANK pools in those protocols. This mechanism not only allows for a higher yield percentage on fees accrued in said pools, but also provides rewards in the form of more BANK tokens, as well as protocol tokens.

One such agreement was made in August of 2021 to launch an 80/20 BANK/wETH liquidity pool with Balancer protocol[1]. The proposal passed and the BANK/wETH Balancer Pool on Ethereum Mainnet was established with liquidity mining benefits that allowed Liquidity Provider (LP) token owners to earn both BAL and BANK for participating. Due to miscommunication with the timing for rewards distribution, Balancer ran rewards for five weeks beyond what was agreed upon. As a result, they have come up short on BANK to distribute. Because bDAO values our partnership with Balancer, we want to address this discrepancy and provide Balancer with the necessary BANK to distribute as rewards to those who provided liquidity during the extended rewards period.

SOLUTION

This proposal addresses this inconsistency and fulfills bDAO’s obligation to Balancer and LP token owners. Upon approval, bDAO will provide 475K BANK to Balancer to distribute five weeks worth of liquidity mining rewards to LP token holders during the reward period, not only honoring bDAO’s agreement with Balancer, but in appreciation for their willingness to provide rewards . This will also serve to maintain bDAO’s social capital, as potential partners can be confident that bDAO executes on its responsibilities.

  • Approve
  • Deny

0 voters

1 Like
2

BIG thanks to @nonsensetwice for doing ALL of the lift on this write up.
Awesome dude :+1: :bowing_man:

3 Likes
3

Yay! Was wondering if I’d ever receive the BANKs generated by using the pool.

Thank youuuu

3 Likes
4

Do people get the bank retroactively? Even if they have liquidated their position?

2 Likes
5

Yea, if the rewards say you have pending BANK distribution, then that will be claimable once this is complete.

3 Likes
6

If I’d like to support by offering my BANK tokens for liquidity, do I just go to the Balanced protocol and “stake” it there?

7

Great community that not only supports its obligation but ALWAYS attempts to provide partnership support. Long term, goodness pays off. BDAO strong.

1 Like
8

Why are we staking on mainnet still? Most ppl with 50k bank or less will get most gains wiped out with fees.

9

This isn’t for mainnet staking, it is to cover a debt due to a miscommunication based on previous mainnet staking.

2 Likes